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Title:The economics of the smart grid PDF Logo
Authors:De Castro, Luciano
Dutra, Joisa
Issue Date:2012
Series/Report no.:Discussion Paper, Center for Mathematical Studies in Economics and Management Science 1544
Abstract:Smart Grid (SG) technologies may bring substantial advantages to society, but the required investments are also sizable. This paper establishes a framework for examining the issues related to the SG, and highlights some of the difficulties in establishing a mechanism for paying SG costs. In particular, we show that generators will lose profits as a direct effect of demand response initiatives, and most of the benefits of SG cannot be easily converted into payments.
Document Type:Working Paper
Appears in Collections:Discussion Papers, Kellogg School of Management, Northwestern University

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